Topic 4: Introduction to

Enterprise Business
Systems
Edward Kabaale
256-703658907
ekabaale@mubs.ac.ug
Makerere University Business School
ENTERPRISE RESOURCE PLANNING (ERP)

 A cross-functional enterprise system

driven by an integrated suite of software
modules that supports the basic internal
business processes of a company (or
Transactional Backbone)

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ENTERPRISE RESOURCE PLANNING (ERP)

 ERP attempts to integrate all departments

and functions across a company onto a
single computer system that can serve all
those different departments’ particular
needs.

 ERP automates the tasks involved in

performing a business process. If installed
correctly, it can have a tremendous payback
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Some of ERP’s functions include:
 Bookkeeping & Accounting
 Human Resource Management
 Planning Production

 Supply-Chain Management

 Customer relations management

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ERP Application Components

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How a company can use ERP
 Update the company’s legacy systems.
 Cut down on inter-office paperwork.
 To standardize the manufacturing processes
and increase productivity.
 Will give more information and better access
to its suppliers and customers

 NB: ERPs are enablers of other business

opportunities

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Before Enterprise Resource Planning
 Multiple systems, different interfaces, difficult to
extract info about customers, sales
 Hard to maintain, many languages, databases,
inconsistencies
 Can take weeks or months to obtain info about
customers, or where systems changes are needed
 Lost orders for different customer and hence
customer dissatisfaction that leads to customer loss.
 Keying into different computer systems that invite
errors in the due course.

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With Enterprise Resource Planning
 Integrated systems
 Consistent interface
 One database
 Access to current data
 Improved planning capabilities
 Multinational capabilities
 Quality and Efficiency
 Decreased Costs
 Decision Support
 Enterprise Agility
 Security (Firewall & VPN

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Hidden costs of ERP
 Training of employees
 Integration and testing
 Data conversions
 Data analysis
 Consultancy fees
 Replacing your best and brightest
employees
 Implementations teams can never stop
 Waiting for ROI
 Post ERP depression
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Customer Relationship Management
 Business and technology discipline to
coordinate all of the business processes for
dealing with customers.

 A customer-centric focus
 Customer relationships have become a
company’s most valued asset
 Every company’s strategy should be to
find and retain the most profitable
customers possible
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 Cont CRM
 CRM systems focus on coordinating all of the
business processes surrounding the firm’s
interactions with its customers in sales,
marketing, and service to optimize revenue,
customer satisfaction, and customer retention.

 The ideal CRM system provides end-to-end

customer care from receipt of an order through
product delivery
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 CRM
 It uses IT to track all of the ways in which
a company interacts with its customers
and to analyze these interactions to
maximize the lifetime value of customers
for the company while simultaneously
maximizing satisfaction for the customers.

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 What is CRM?
 Managing the full range of the customer
relationship involves
 Providing customer-facing employees with a
single, complete view of every customer at
every touch point and across all channels
 Providing the customer with a single, complete
view of the company and its extended channels
 CRM uses IT to create a cross-functional
enterprise system that integrates and
automates many of the customer-serving
processes
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Application Clusters in CRM

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Contact and Account Management
 CRM helps sales, marketing, and service
professionals capture and track relevant
data about
 Every past and planned contact with prospects and
customers
 Other business and life cycle events of customers
 Data are captured through customer
touchpoints
 Telephone, fax, e-mail
 Websites, retail stores, kiosks
 Personal contact
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Sales
 A CRM system provides sales reps with
the tools and data resources they need to
 Support and manage their sales activities
 Optimize cross- and up-selling
 CRM also provides the means to check on
a customer’s account status and history
before scheduling a sales call

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Marketing and Fulfillment
 CRM systems help with direct marketing
campaigns by automating such tasks as
 Qualifying leads for targeted marketing
 Scheduling and tracking mailings
 Capturing and managing responses
 Analyzing the business value of the campaign
 Fulfilling responses and requests

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Customer Service and Support
 A CRM system gives service reps real-time
access to the same database used by
sales and marketing
 Requests for service are created, assigned,
and managed
 Call center software routes calls to agents
 Help desk software provides service data
and suggestions for solving problems
 Web-based self-service enables customers
to access personalized support information
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Retention and Loyalty Programs
 It costs 6 times more to sell to a new customer
 An unhappy customer will tell 8-10 others
 Boosting customer retention by 5 percent can boost profits
by 85 percent
 The odds of selling to an existing customer are 50 percent;
a new one 15 percent
 About 70 percent of customers will do business with the
company again if a problem is quickly taken care of
 Enhancing and optimizing customer retention and loyalty is
a primary objective of CRM
 Identify, reward, and market to the most loyal
and profitable customers
 Evaluate targeted marketing and relationship programs
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Benefits of CRM
 Benefits of CRM
 Identify and target the best customers
 Real-time customization and personalization
of products and services
 Track when and how a customer contacts
the company
 Provide a consistent customer experience
 Provide superior service and support across
all customer contact points

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CRM Failures
 Business benefits of CRM are not
guaranteed
 50 percent of CRM projects did not produce
promised results
 20 percent damaged customer relationships
 Reasons for failure
 Lack of understanding and preparation
 Not solving business process problems first
 No participation on part of business
stakeholders involved
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Trends in CRM
 Operational CRM
 Supports customer interaction with greater
convenience through a variety of channels
 Synchronizes customer interactions consistently
across all channels
 Makes the company easier to do business with
 Analytical CRM
 Extracts in-depth customer history, preferences, and
profitability from databases
 Allows prediction of customer value and behavior
 Allows forecast of demand
 Helps tailor information and offers to customer needs

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Trends in CRM
 Collaborative CRM
 Easy collaboration with customers, suppliers, and partners
 Improves efficiency and integration throughout supply chain
 Greater responsiveness to customer needs through outside
sourcing of products
and services
 Portal-based CRM
 Provides users with tools and information that fit their needs
 Empowers employees to respond to customer demands
more quickly
 Helps reps become truly customer-faced
 Provides instant access to all internal and external customer
information

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Supply Chain Management (SCM)
 Fundamentally, supply chain management

helps a company
 Get the right products
 To the right place
 At the right time
 In the proper quantity
 At an acceptable cost

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Goals of SCM
 The goal of SCM is to efficiently
 Forecast demand
 Control inventory
 Enhance relationships with customers,
suppliers, distributors, and others
 Receive feedback on the status of every link
in the supply chain

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What is a Supply Chain?
 The interrelationships
 With suppliers, customers, distributors, and
other businesses
 Needed to design, build, and sell a product
 Each supply chain process should add
value to the products or services a
company produces
 Frequently called a value chain

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Electronic Data Interchange
 One of the earliest uses of information
technology for supply chain management
 The electronic exchange of business
transaction documents between supply
chain trading partners
 The almost complete automation of an e-
commerce supply chain process
 Many transactions occur over the Internet,
using secure virtual private networks

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Roles and Activities of SCM in
Business

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Planning & Execution Functions
of SCM
 Planning
 Supply chain design
 Collaborative demand and supply planning
 Execution
 Materialsmanagement
 Collaborative manufacturing
 Collaborative fulfillment
 Supply chain event management
 Supply chain performance management
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Benefits and Challenges of SCM
 Key Benefits
 Faster, more accurate order processing
 Reductions in inventory levels
 Quicker times to market
 Lower transaction and materials costs
 Strategic relationships with supplier

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Goals and Objectives of SCM

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Benefits and Challenges of SCM
 Key Challenges
 Lack of demand planning knowledge, tools,
and guidelines
 Inaccurate data provided by other information
systems
 Lack of collaboration among marketing,
production, and inventory management
 SCM tools are immature, incomplete, and
hard to implement

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Trends in SCM

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